When negotiating a
job, you need all of the essential skills covered in Part I of the
book (chapters 1,2,3, and 4). In addition, you should be comfortable
with your own bargaining style (and know its limits; see chapter 5).
You should be well versed in building trust and rapport (chapter 6)
and know the ins and outs of power (chapter 7) and how to kindle
creativity (chapter 8). This appendix is designed to provide you
with even more skills for this all-important negotiation that will
reoccur throughout your life. We have organized the appendix into
three phases: Preparation, in-vivo process, and postoffer.
PREPARATION
What follows is a preparation worksheet for an MBA student who is
preparing for salary negotiations with potential employers. This is
an extremely important negotiation because it will affect one’s
livelihood and welfare for years to come. A misassumption at this
point can have dramatic effects on one’s personal and professional
well-being.
STEP 1: FIGURE OUT WHAT YOU REALLY WANT
This sounds easy enough, but for a 28-year-old, this means an
ability to project forward in time and to be concerned with things
like retirement and benefits. Karen Cates of the Kellogg School
(1997) recommends working through a checklist of needs and wants
(see Box A4-1). Cates further suggests a practical, step-by-step
approach to compensation and benefits (see Table A4-1).
STEP 2: DO YOUR HOMEWORK
This means really researching the company and the industry.
Fortunately, the Internet is dramatically changing the ability of
people to get information quickly and easily, especially when it
comes to salaries. Several Web sites offer salary surveys, job
listings with specified pay levels, and even customized compensation
analyses. For example, JobSmart, run by a regional public library
agency in San Mateo, California, offers links to 150 free salary
surveys on the Web that draw about 4,000 visitors each day. Exec-U-Net, a for-profit job search network, divulges free
information about the salary, bonus, and stock options offered for
about 650 upper-management positions, entirely updated every two
weeks. However, for many jobs, cyberspace pay information represents
only a starting point. In other words, these Web sites can only tell
you if you are in the ballpark and can stop you from under-bidding
yourself (see Sidebar A4-1)
Box A4-1
CHECKLIST OF NEEDS AND WANTS
(CATES, 1997)
|
| Necessary Living Expenses |
Additional Living Expenses |
 |
| Housing (including utilities)
|
|
| Auto
|
|
| Computer/ telecom
|
|
| Childcare
|
|
| Insurance (auto, home, life,
professional)
|
|
| Personal (food, medical, clothing, household)
|
|
| Student loan debt service
|
|
| Taxes (income, property, etc.)
|
|
|
| Recreation and entertainment (vacations, events,
activities, books, etc.)
|
|
| Services (professional and household)
|
|
| Continuing education
|
|
| Children’s expenses (lessons, schooling)
|
|
| Gifts, charity
|
|
Table A4-1: Compensation and benefits
(Cates, 1997)
|
| Compensation |
Retirement |
Paid Leave |
Protection |
|
| Salary
|
|
| Bonus
|
|
| Other variable pay
|
|
| Stock/equity interest
|
|
|
| Pension/401K
|
|
| Guaranteed pay plans (supplemental unemployment)
|
|
| Savings plans
|
|
|
| Vacation, sick, and personal days
|
|
| Training time
|
|
| Holidays and special travel considerations
|
|
|
| Insurance (life, disability, health, other)
|
| |
